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ISO-14001 Standard and Firms’ Environmental Performance: Evidence from the U.S. Transportation Equipment Manufacturers

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  • Nemati, Mehdi
  • Zheng, Yuqing
  • Hu, Wuyang

Abstract

Manufacturers have been increasingly relying on environmental management systems (such as ISO 14001 based ones) to comply with government regulations and reduce waste. In this paper, we investigated the impact of ISO 14001 certification on manufacturers’ toxic release by release level. We applied the censored quantile instrumental variable estimator (CQIV) to data on the U.S. transportation equipment manufacturing subsector facilities. Results show that ISO 14001 had a negative and statistically significant effect on the top 10% manufacturing sites in terms of on-site toxic release, but it did not reduce off-site toxic release. Therefore, one should not expect ISO 14001 to have a uniform impact on manufacturing sites’ environmental performance. For large firms, encouraging voluntary adoption of ISO 14001 might be an effective government strategy to reduce on-site pollution. However, for small firms and for the purpose of reducing off-site pollution, other economic incentives or regulations are warranted.

Suggested Citation

  • Nemati, Mehdi & Zheng, Yuqing & Hu, Wuyang, 2016. "ISO-14001 Standard and Firms’ Environmental Performance: Evidence from the U.S. Transportation Equipment Manufacturers," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235645, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea16:235645
    DOI: 10.22004/ag.econ.235645
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    Cited by:

    1. Iñaki Heras‐Saizarbitoria & Olivier Boiral & Alberto Díaz de Junguitu, 2020. "Environmental management certification and environmental performance: Greening or greenwashing?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2829-2841, September.

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    Keywords

    Environmental Economics and Policy; Industrial Organization;

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